SENWES Integrated Report 2020 | Page 77

FINANCIAL REVIEW
SIMPLIFIED DISTRIBUTABLE INCOME AND SEGMENT STATEMENTS
Difference
Group*
Market
Access
Input
Supply
Financial
Services
Corporate and
Consolidation
%
2020
R’m
2019
R’m
2020
R’m
2019
R’m
2020
R’m
2019
R’m
2020
R’m
2019
R’m
2020
R’m
2019
R’m
Turnover 78,8% 4,803 2 687 765 758 3,533 1 485 385 348 120 96
Gross profit 30,3% 1,776 1 363 750 762 672 292 231 215 123 94
Operating expenses 38,4% (1,149) (830) (466) (396) (458) (215) (30) (47) (194) (172)
EBITDA 17,6% 627 533 284 366 214 77 201 168 (72) (78)
Depreciation 71,8% (95) (55) (42) (30) (35) (7) - - (18) (18)
EBIT 11,3% 532 478 242 336 179 70 201 168 (90) (96)
Net finance costs 7,5% (86) (80) (56) (36) (31) (40) - - 1 (4)
Profit before tax 12,1% 446 398 186 300 148 30 200 168 (89) (100)
Taxation (5,2%) (109) (115)
Profit after tax 19,1% 337 283
Non-controlling interest 1 822,9% (34) (2)
Profit after tax and non-controlling 7,7% 303 281
interest
Adjustments:
Gain on bargain purchase of subsidiary (100%) (56) -
Reversal of impairment on loans (100%) (12) -
Impairment of goodwill 100% 12 -
Legal and consultation fees (61,7%) 6 16
Other 300,0% (7) (2)
Normalised headline earnings 246 295
EPS 5,5% 178,3 169,1
HEPS (18,7%) 144,2 177,5
Interest cover 4,5% 7,0 6,7
Gearing ratio 23,0% 144% 121%
*Group includes corporate segment.
MAIN VARIANCES
➊ The group’s gross profit is 30,3% higher, mainly due to the inclusion
of the newly acquired KLK’s gross profit.
➋ The group’s operational expenses increased by 38,4%, mainly
due to the following reasons:
� The inclusion of KLK’s operational expenditure from July
2019;
� The inclusion of newly acquired Grainovation and Falcon’s
operational expenditure from November 2019; and
� Higher maintenance costs at silos (mainly mechanical and
electrical) due to increased intake.
➌ The group’s EBIT is 11,3% higher than 2019, mainly due to acquisitions
made during the year as explained above.
➍ The group’s finance costs are higher than the previous year
mainly due to the increase in non-interest earning assets.
SENWES INTEGRATED REPORT 2020
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